Question

In order to have money for their son's college education, a young couple started a savings...

In order to have money for their son's college education, a young couple started a savings plan into which they made intermittent deposits. They started the account with a deposit of $2,000 (in year zero) and then added $3,000 in years two, five and six. The amount they had in the account in year ten if they earned interest at 12% per year was nearest to:

Homework Answers

Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
A company wants to have enough money to purchase a $500,000 piece of land in five...
A company wants to have enough money to purchase a $500,000 piece of land in five years. How much does it have to put into a 4% interest account annually to buy the land? In order to have money for their son's college education, a young couple started a savings plan into which they made a deposit of $2,000. The amount they had in the account in year ten if they earned interest at 12% per year was nearest to:
As a savings plan to guarantee their child's college education, a couple decides to deposit $...
As a savings plan to guarantee their child's college education, a couple decides to deposit $ 100 a month into a bank account that pays interest at a rate of 6% per year compounded monthly. If the savings plan started when the child was 6 years old, how much money will he have accumulated when he turns 18? Please show process.
Jan Green established a savings account for her son's college education by making annual deposits of...
Jan Green established a savings account for her son's college education by making annual deposits of $10,000 at the beginning of each of 5 years to a savings account paying 10%. At the end of the 5th year, the account balance was transferred to a bank paying 10%, and annual deposits of $10,000 were made at the end of each year from the sixth through the eleventh years. What was the account balance at the end of the eleventh year?...
A young couple have decided to make advance plans for financing their 3-year-old son’s college education....
A young couple have decided to make advance plans for financing their 3-year-old son’s college education. Money can be deposited at 7% compounded annually. What annual deposit on each birthday from the 4Th to the 15Th inclusive must be made to provide $30,000 on each birthday from the 18Th to the 21st inclusive? If the annual deposit is 5000, what remains in the account after the last withdrawal?
A mother wants to invest $7000 for her son's future education. She invests a portion of...
A mother wants to invest $7000 for her son's future education. She invests a portion of the money in a bank certificate of deposit (CD account) which earns 4% and the remainder in a savings bond that earns 7%. If the total interest earned after one year is $420, how much money was invested in the CD account? Round to the nearest cent if necessary.
A mother wants to invest $5000 for her son's future education. She invests a portion of...
A mother wants to invest $5000 for her son's future education. She invests a portion of the money in a bank certificate of deposit (CD account) which earns 4% and the remainder in a savings bond that earns 7%. If the total interest earned after one year is $300.00, how much money was invested in the CD account? The total interest earned after one year is $300.00. How much money was invested in the CD account? $______
3c3. You need to accumulate $75,706 for your son's education. You have decided to place equal...
3c3. You need to accumulate $75,706 for your son's education. You have decided to place equal year-end deposits in a savings account for the next 5 years. The savings account pays 14.25 percent per year, compounded annually. How much will each annual payment be? Round the answer to two decimal places. 3b3. You plan to buy a house in 13 years. You want to save money for a down payment on the new house. You are able to place $323...
In order to accumulate enough money for a down payment on a house, a couple deposits...
In order to accumulate enough money for a down payment on a house, a couple deposits $367 per month into an account paying 6% compounded monthly. If payments are made at the end of each period, how much money will be in the account in 7 years? Amount in the account= How much interest earned=
(1) A couple have a 3-year-old child; they decided to make annual deposits into a savings...
(1) A couple have a 3-year-old child; they decided to make annual deposits into a savings account to fund his 4-year university education. With the first deposit being made on his fourth birthday and the last deposit being made on his 15th birthday. Then, starting on his 18th birthday, 4 withdrawals are required, starting at $4000 and increasing at a rate of 11%. If the effective annual interest rate is 25% during the whole period of time, what are the...
Ten years ago, when Jen was born, her parents opened up a savings account and deposited...
Ten years ago, when Jen was born, her parents opened up a savings account and deposited $10,000 immediately. They planned for her to use all the money deposited in that account over the years towards her college education when she turns 18. Afterwards, they made additional deposits of $5,000 per year. However, due to some unforeseen circumstances, they will withdraw $8,000 from the account this year and will not contribute anything next year. However, they plan to deposit $7,000 per...
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT